China's factory activity picked up more than expected in August, with the official manufacturing Purchasing Manager's Index (PMI) coming in at 51.3.

The index went up 0.1 percentage points from the previous month, reflecting steady expansion in the manufacturing sector, data from the National Bureau of Statistics showed on Friday.

This is the 25 consecutive month that the manufacturing PMI stayed above the 50 level suggesting expansionary activity.

A reading above 50 indicates expansion, while a reading below 50 represents contraction.

The production sub-index went up by 0.3 points to 53.3 in August, while new orders went down by 0.1 points from the previous month and stood at 52.2 during the period, according to the NBS.

The official PMI gauges activities of large scale companies and state-owned enterprises.